Morrisons is working with banks on a debt financing package of up to Â£5 billion to support a potential private equity buyout of the supermarket according to Reuters.

GENERAL MERCHANDISE

Morrisons in talks with banks on Â£5 billion financing deal

20 February 2014 | by The Retail Bulletin

Morrisons is working with banks on a debt financing package of up to Â£5 billion to support a potential private equity buyout of the supermarket according to Reuters.

Earlier this month it was reported that the founding family of Morrisons, which owns a 9.5% stake in the business, had contacted private equity firms to gauge their interest in taking the company private.

Yesterday Reuters quoted a senior leveraged loan banker as saying: "The size of the transaction, which could get as high as £10 billion, could require a number of private equity players to team up, given the size of the equity cheque needed."

Morrisons is the UK's fourth-largest supermarket operator and listed on the London Stock Exchange in 1967.

The company’s sales have been suffering of late due to its lack of a significant online and convenience store business.

Morrisons is currently trying to catch up with rivals after launching its online grocery business in December 2013. The new service made its first deliveries in January and is aiming to cover half of the UK by the beginning of 2015.

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